The Abu Dhabi Investment Authority is injecting INR 4,966.80 Crores into Reliance Retail Ventures Ltd in exchange for a 0.59% equity stake.
According to a statement from Reliance Retail, this capital injection will result in a pre-money valuation of INR 8.28 lakh crore for the retail and digital commerce subsidiary of Reliance Industries Ltd (RIL). This valuation positions it among the top four companies in the country in terms of equity value.
Commenting on the announcement, Reliance Retail’s executive director Isha Ambani said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited… ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities.”
The retail division of the diversified conglomerate, which spans industries from oil to telecom, boasts a customer base of 267 million. It operates through an omnichannel network encompassing over 18,500 physical stores and various digital commerce platforms. The company maintains a presence in a wide array of sectors, including groceries, consumer electronics, fashion and lifestyle, and pharmaceuticals.
Within its portfolio, Reliance Retail encompasses brands like AJIO, JioMart, Netmeds, Milkbasket, and Trends. Additionally, the company holds a minority stake in the challenged quick commerce startup, Dunzo.
Reliance Retail further asserts that its new commerce venture has successfully digitalized over 3 million small and unorganized merchants nationwide.
This announcement represents the most recent fundraising effort undertaken by the retail behemoth in recent months. In September, the company disclosed that global investment major KKR was purchasing a 0.25% stake for INR 2,069.5 crores.
Before that, Reliance Retail secured INR 8,278 crores in funding from the Qatar Investment Authority. Both transactions were completed at a pre-money equity valuation of INR 8.3 lakh crores.
In the first quarter (Q1) of the fiscal year 2023-24 (FY24), Reliance Retail reported a net profit of INR 2,448 crores, with operating revenue reaching INR 62,159 crores. Notably, digital and new commerce activities contributed 18% to the company’s total revenue during this quarter.